CHENNAI: Piramal Enterprises, through its subsidiary Piramal Finance Limited announced what it says will be the first of other such investments in the auto-component sector. The first two investments have gone into financing RSB Group and Indoshell Mould Ltd, to the extent of `275 crore and `290 crore, respectively.
According to the statements by the firms, the investments were made through the Corporate Finance Group (CFG), erstwhile Structured Finance Group, of Piramal Finance Limited. The expansion into the auto-component sector was natural for the CFG, according to company officials.
“The auto component space has been on our radar as a focus area for a while now. As is standard practise across our platform, we committed to an in depth study of the sector over the past few quarters which, has culminated in announcing these first two transactions.
The industry has grown at a 15 per cent CAGR over the last decade, which is significantly higher than the original equipment manufacturers (OEM) themselves. Both RSB and Indoshell have long standing relationships with major OEMs and command higher wallet share of their respective customer set. We look forward to more such transactions as we further scale up our investment focus towards this sector,” said Khushru Jijina, MD, Piramal Finance Limited.
The group’s CFG has also diversified over time both in terms of sector and offerings. CFG is now sector-agnostic and offers capital across the risk curve including senior debt, acquisition finance, promoter finance and private equity exits.